AB 833

Under current law, generally, beginning in 2011, a municipality receives an

annual municipal aid payment from the state (otherwise known as shared revenue)

that is equal to the amount it received in 2010. Under this bill, beginning in 2014,

each municipality also will receive a payment based on its population in proportion

to the population of the region where the municipality is located. This bill creates

eight regions and each region consists of several counties. For purposes of

determining the municipality's payment, the municipality's population is adjusted

to reflect the average of the adjusted gross income of the municipality's population,

as compared to that of the region, and the equalized value of the municipality's

property, as compared to that of the region. The total amount of these payments is

equal to 75 percent of the difference between the total amount of municipal aid

payments paid in the previous year and the total amount of municipal aid payments

paid in the previous year increased by a percentage that represents the portion of all

general fund expenditures for the year allocated to municipal aid.

In addition to the payment based on a municipality's region, each municipality

will receive a payment based on its population in proportion to the population of all

municipalities. The population used to determine the payment is adjusted to reflect

the average of the adjusted gross income of the municipality's population, as

compared to that of all municipalities, and the equalized value of the municipality's

property, as compared to that of all municipalities. The total amount of these

payments is equal to 25 percent of the difference between the total amount of

municipal aid payments paid in the previous year and the total amount of municipal

aid payments paid in the previous year increased by a percentage that represents the

portion of all general fund expenditures for the year allocated to municipal aid.